Impact of Leadership Styles on Organizational Effectiveness and Performance

This research paper explores the impact of various leadership styles on the effectiveness and performance of organizations. It discusses different leadership styles, their advantages and disadvantages, and their impact on business performance and effectiveness. The paper also recommends suitable leadership styles that could enhance business performance and effectiveness.

The Impact of Various
Leadership on
Effectiveness and
Performance of
Organization

Table of Contents
Chapter 1: Introduction ...................................................................................................................3
Research topic.............................................................................................................................3
Background of the research.........................................................................................................3
Significance of the research........................................................................................................3
Purpose of the research...............................................................................................................3
Research aim...............................................................................................................................4
Research objectives.....................................................................................................................4
Research questions......................................................................................................................4
Chapter 2: Literature Review...........................................................................................................4
Different styles of leadership used within the organization........................................................4
Impact of different leadership styles on the business performance and effectiveness................5
Suitable leadership style that could enhance the business performance and effectiveness........6
Chapter 3: Research Methods and Methodology.............................................................................6
Chapter 4: Conclusion .....................................................................................................................9
Chapter 5: References...................................................................................................................10
Books and Journals:..................................................................................................................10
Online:.......................................................................................................................................10

Chapter 1: Introduction
Research topic
“To determine the impact of various leadership styles on the effectiveness and
performance of the organization”.
Background of the research
A leader's role can provide a huge impact on the business performance and effectiveness.
There are different styles of leadership that could be used within the firm. The current topic of
research will be based on the leadership and its different styles that could exploit within the
organization in order to improve overall performance and effectiveness (Clifton, Larsson and
Schnurr, 2020).
Significance of the research
Leaders act as a backbone of any organization as they are linkage that directly connect
with the employees in order to direct, motivate, lead, guide along with control their activities to
reach the ultimate goals of the business. It is important that leaders should play their role
effectively as it could effect the employees' performance as well. Effective leaders clearly
communicate the goals and vision of business to their team members. They know how to utilise
the available resources in an optimum way to attain the goals efficiently. Also, they appreciate
and reward the performance of team members in order to motivate them for better work in the
organisation.
Purpose of the research
The motivation of the current research is based on dual perspectives that are personal and
professional. From personal viewpoint, understanding the concept of leadership will help in
leading and guiding subordinates to work towards the goals accomplishments. It may also help in
using different styles of leadership as per the need and demands of business situation. On the
other hand, from professional viewpoint, effective leadership can help in reaching the goals on a
timely basis. It helps in communicating proper direction and purpose of business to the
employees so that they would understand why they hire for the position and what should they do
for gaining their personal along with professional goals.

Research aim
“To evaluate the various set of leadership styles along with determining its impact on the
effectiveness and performance of organization”.
Research objectives
 To review the concept of the commonly used leadership style within a firm.
 To analyse the impact of various leadership styles on the effectiveness and performance
of organization.
 To recommend and investigate the most suitable set of leadership style that have a
positive influence on the effectiveness and performance of the organization.
Research questions
 What leadership styles can be used within the organization?
 Elaborate the impact of different leadership styles on the effectiveness and performance
of organization.
 What are the most likely set of leadership styles you could give as recommendation to
enhance the business performance along with its effectiveness?
Chapter 2: Literature Review
Different styles of leadership used within the organization.
As per the viewpoint of Solinger, Jansen and Cornelissen, (2020) leadership is all about
taking challenges and risks which could increase the business growth and performance. Effective
leaders always attempt to motivate and influence their team members to attain something new
and better for the firm. They always measure and track the business success by seeking at the
learning and attainments of their team members (Solinger, Jansen and Cornelissen, 2020). The
following are the characteristics of effective leadership-
 Effective leaders always try to clearly communicate the business vision, mission and
objectives.
 A strong leader appreciates informed results, provide good judgments and welcomes
challenging opinions.
 They are always inspiring and positive in leading others.
From the opinion of Hughson (2020) leadership used a procedure of influencing team
members to work in a collaborative manner to achieve great things in business. Effective leaders

utilise different methods, techniques or styles to reach the goals of business while engaging
workforce who directly report to them (Hughson, 2020). Such leadership styles are discussed
underneath:
 Democratic leadership: A leader who uses democratic leadership style possesses a high
value and respect by their team members as they think that leaders are the most
knowledgable, skilled and diverse among all. They are excellent listeners and encourage
team members to give their suggestions and feedback on something, although ultimate
decisions will be taken by themselves only.
Advantages Disadvantages
 Provide employees with a voice which
increase morale, engagement and
retention.
 It increases creativity.
 It tend to prolong the process of
decision-making.
 It can increases conflicts.
 Transformational leadership: These kind of leaders are highly committed to business
purpose and big picture objectives. They establishes the goals by mapping out where the
organisation is going and what will occur when they reach end results. In order to engage
their employees, these leaders set expectations in front of them.
Advantages Disadvantages
 It increases employee's morale along
with retention.
 It places high value of a future goal of
the business.
 As these leaders are future focused,
they might neglect the present day
problems.
 It might avoid the preferences at
workplaces.
Impact of different leadership styles on the business performance and effectiveness.
As per the perspective of Duggan (2019) leadership styles influences the company by
affecting employee productivity, morale, decision-making speed along with metrics. Effective
and strong leader carefully assess the business problems, examine the skill-sets of followers,
consider the alternatives and then make informed decisions. Strong leaders motivates and leads

the business effectiveness by inspiring and motivating the employees. Loyal and committed
workforce expect their leaders give a clarity in vision of the strategic direction of company. They
also want to see consistency in choices made in context to issues or challenges of business.
Concise and clear communication in choices from leaders regularly make sure that all followers
understand what to do. With such type of business structure, the leaders enable business
performance and effectiveness (Duggan, 2019).
On the other side, according to the viewpoint of Khanal and et.al. (2021) ineffective
leaders and their leadership can do bigger damage to the firm as they are highly accountable for
influencing and leading those who report to them. Entire team performance and effectiveness can
be harmed, if leaders are not strong and ineffective. Ineffective leadership styles develop bad
morale, and shackle the employee engagement and satisfaction, along with goals may be not
clear and productivity may suffer. These negative impacts can be significant to the business
performance and effectiveness (Khanal and et.al., 2021).
Suitable leadership style that could enhance the business performance and effectiveness.
As per the opinion of Heller (2019) the theory of contingency suggests that there is no
single way to run the organisation. It is important to consider both internal and external factors as
the organisational success depends on it. The suitable candidate should hire as per the business
scenario in order to deal issues or challenges. Overall, it suggests that leadership styles should be
changed and altered as different situations of business will always arise (Heller, 2019).
From the perspective of Norris, Ghahremani and Lemoine (2021) delegative or laissez
faire is the most suitable leadership style that can be utilised by leaders to bring effectiveness and
performance within the business. This leadership style helps in building trusts among employees
as leaders let their followers to make decisions by their own. These leaders believe in less
interference and direction. It brings creativity in organisation as employees can put different
ideas in the working (Norris, Ghahremani and Lemoine, 2021).
Chapter 3: Research Methods and Methodology
The research onion framework introduced by Saunders in which he introduced different
phases that helps in the evolution of research work. It benefits depends on its adaptability for
almost any kind of research methodology. In context with current research, the different phases
are as follows:

Research philosophy
This is the first stage that explains a set of beliefs the investigation is done upon.
Basically, there are three main philosophies of research such as positivism, interpretivism along
with pragmatism (Gupta and Gupta, 2022). Here, in this research, positivism will be used as
these are more scientific in nature and outcomes are more reliable. It is also seen that it delivers
high structure methodology to gather the information. Whereas, interpretivism focuses more on
qualitative data and covers small samples of the knowledge.
Research approach
In the second layer of the research onion model, the research approaches involves
deductive and inductive. For the present research work, deductive research approach will be
exploited as it helps in testing the existing theories together with hypothesis in a more accurate
way for gathering the knowledge about the chosen topic. Whereas, the inductive approach is
more suitable for qualitative research work as it helps in gathering a particular set of knowledge
to attain the end results.
Research strategy
It may include literature review, experimental research, case study research, surveys,
interviews and much more (Mukherjee, 2019). Survey will be used for gaining the information
about the topic. The reason behind this selection is that it helps in attaining the knowledge from a
large size of sample population.
Research method
This layer helps researcher to choose between qualitative or quantitive research method.
It covers three methods of doing investigation such as mono, mixed and multi method. For the
existing research report, mono method will be used to collect the information as it assists in
effective evaluation of views and thoughts of the respondents.
Time-horizon
This layer covers two types of time-horizon such as longitudinal and cross-sectional. For
the present research, cross-sectional will be exploited because it assists in collecting the suitable
type of knowledge on the provided topic effectively. It is cost effective as well.
Data collection and analysis
In this layer, the researcher need to opt primary or secondary data collection method.
Primary data collection method will be used by the researcher as it is based on more reliability

and validity (Thompson Burdine, Thorne and Sandhu, 2021). Also, secondary data collection
method is not efficient to collect certain information that the investigator wants to study.
Sampling- It is of two types that are probability and non-probability method of sampling.
For the current research, probability sampling method will be considered as it is based on
random selection method where researcher will get strong statistical data without any sort of
biasness. The sample size will be 20 in order to collect the information about the chosen topic.
Frequency distribution method- This will be used to analyse the collected information.
The reason behind this is that the researcher will get the data in tabular form the purpose of
interpretation.
Time prospects of the research

From the above images, it is highlighted that the research work or activities such as to
prepare aims as well as objectives, the investigator will require fifteen days, for making literature
review, it will take twenty days. The investigator will need hundred days to finish the research
project. It will further support in examining which investigation require to finish first and which
can be done later with opening date of the research work and end date of the research.
Ethical considerations
It is very much important to conduct the research in an ethical way to gain the end results.
There are certain ethical considerations which is needed to ascertain by the investigator-
 It should not damage mentally or physically to anyone whether the person is participating
in the investigation or not.
 The information should be assembled in a fair manner without considering any individual
usefulness.
Chapter 4: Conclusion
It has been concluded that the an organisation's effectiveness and performance is highly
influenced by the leaders and their styles used within the organisation. If leaders play their role
effectively then it can bring positive influences to the business, but somehow if leaders are not
effective and strong enough to play their role then it can harm the employees along with business
performance and effectiveness.

Chapter 5: References
Books and Journals:
Solinger, O.N., Jansen, P.G. and Cornelissen, J.P., 2020. The emergence of moral
leadership. Academy of Management Review, 45(3), pp.504-527.
Clifton, J., Larsson, M. and Schnurr, S., 2020. Leadership in interaction. An introduction to the
Special Issue. Leadership, 16(5), pp.511-521.
Khanal, J. and et.al., 2021. Context-specific leadership practices: An examination of evidence of
successful community school headteachers in Nepal. Leadership and Policy in Schools, pp.1-25.
Heller, F.A., 2019. Leadership, Decision Making, and Contingency Theory. In Managing
Democratic Organizations (pp. 211-227). Routledge.
Norris, K.R., Ghahremani, H. and Lemoine, G.J., 2021. Is it laissez-faire leadership or
delegation? A deeper examination of an over-simplified leadership phenomenon. Journal of
Leadership & Organizational Studies, 28(3), pp.322-339.
Gupta, B.N. and Gupta, N., 2022. Research methodology. SBPD Publications.
Mukherjee, S.P., 2019. A guide to research methodology: An overview of research problems,
tasks and methods. CRC Press.
Thompson Burdine, J., Thorne, S. and Sandhu, G., 2021. Interpretive description: a flexible
qualitative methodology for medical education research. Medical Education, 55(3), pp.336-343.
Online:
Hughson C., 2020. 13 common leadership styles. [Online] Available through:
<https://www.ivey.uwo.ca/academy/blog/2020/01/13-common-leadership-styles/>
Duggan T., 2019. The Effects of Leadership Styles on the Organization. [Online] Available
through: <https://yourbusiness.azcentral.com/effects-leadership-styles-organization-5247.html>